Joint Meeting of Energy and Environment Ministers

RECORD OF DECISION

National Implementation Strategy

   
1. Ministers agreed on the following key elements to be included in a national implementation strategy based on a risk management approach:

   
• All actions under the national implementation strategy will recognize and respect the jurisdictional authority of each order of government;

   
• a phased approach which enables timely action now while providing for future progressive action based on decisions in the context of domestic and international developments;

   
• furthering the science of climate change; understanding the impacts, their regional variation and the pace of change particularly in the Arctic; and the need for both mitigation and adaptation strategies for addressing those impacts;

   
• the inter-relationship between Canada=s domestic and international strategies B a national implementation strategy will position Canada to ensure its national circumstances inform international discussions, recognizing that international developments will also inform Canada=s domestic response;

   
• the need for coordinated action within a national framework while recognizing jurisdictional flexibility to meet unique needs, circumstances and opportunities. As well, individual actions in each jurisdiction will be summarized and presented to the world at CoP6, providing a clear indication that Canada is taking action;

   
• the proposed themes for phase one business plans: enhance awareness and understanding; promote technology development and innovation; invest in knowledge/build the foundation; governments lead by example; encourage action across sectors and within all sectors; and

   
• understanding the implications of Canada=s Kyoto target and the need for continuing analytical work to support future decisions on Canada=s international and domestic policy options, including cross cutting policy instruments such as emissions trading.

   
2. Ministers tasked officials with continuing their work, including consultations and analysis, to permit final consideration of a national implementation strategy in the Fall.

   
3. Ministers recognized the need for a coordinated Canadian response to climate change that will send a clear signal to Canadians regarding a framework for action.

   
4. Ministers agreed the national implementation strategy should allow for progress on two tracks, by undertaking immediate action while providing for ongoing parallel analysis and decision making on the opportunities and challenges with respect to the Kyoto Protocol. Ministers agreed that federal, provincial, territorial governments will continue to develop and take individual and coordinated actions and bring them forward for the business plan discussion in the Fall.

   
5. Ministers also supported the three-year rolling business plan approach to implementation of the national implementation strategy, and agreed to consider the first business plan when they next meet in the Fall. Governments will draw upon the extensive work of experts, including the wide range of ideas and options put forward by the Issue Tables. Specific actions in areas including: technology; governments' own actions; improving our knowledge of climate change; encouraging voluntary actions; and sectoral strategies aimed at reducing emissions will be analyzed for inclusion in the first business plan.

   
6. Ministers noted the Fall JMM provides an opportunity to agree to an integrated package B a national implementation strategy, first business plan and federal, provincial and territorial framework agreement.

   
7. The national implementation strategy must meet First Ministers= direction on ensuring that no region should face an unreasonable burden. To ensure this is satisfied, analysis and discussion is required on distribution of the Canadian effort across regions/jurisdictions. Analysis currently underway will provide initial information on the distribution of impacts and will be further developed in the first business plan.

   
8. A document outlining the key elements of a national implementation strategy is attached.

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Key Elements of a National Implementation Strategy

Backgrounder

 Introduction

 A national implementation strategy will recognize the need for a coordinated Canadian response to climate change among governments, industry and individual Canadians.  A national implementation strategy will be part of an integrated package which also includes business plans and a federal-provincial-territorial framework agreement which would describe the nature of governments= collaboration.

Climate change cannot be solved with a one-step, one-pass approach -  instead, it requires both an immediate and a longer term perspective.  Underpinning the key elements of a national implementation strategy is a risk-management approach, which recognizes that the risks of climate change are real.  Timely action now and further knowledge will reduce the uncertainties.

Key Elements

 The following are the key elements of a national implementation strategy:

   
•    

  all actions under the national implementation strategy will recognize and respect the jurisdictional authorities of each order of government;

     
   
•    

  a phased approach which enables timely action now while providing for future progressive action based on decisions in the context of domestic and international developments;

     
   
•    

  furthering the science of climate change; understanding the impacts, regional variation and the pace of change particularly in the Arctic; and the need for both mitigation and adaptation strategies for addressing those impacts;

     
   
•    

    the inter-relationship between Canada=s domestic and international strategies B a  national implementation strategy will position Canada to ensure its national circumstances inform international discussions, recognizing that international developments will also inform Canada=s domestic response;

     

   
•    

  the need for coordinated action within a national framework while recognizing jurisdictional flexibility to meet unique needs, circumstances and opportunities; as well, individual actions in each jurisdiction will be summarized and presented to the world at CoP6, providing a clear indication that Canada is taking action;

     
   
•    

  the proposed themes for phase one business plans: enhance awareness and understanding; promote technology development and innovation; invest in knowledge/build the foundation; governments lead by example; encourage action across sectors and within all sectors; and

     
   
•    

  understanding the implications of Canada=s Kyoto target and the need for continuing analytical work to support future decisions on Canada=s international and domestic policy options, including cross cutting policy instruments such as emissions trading.

     

Phase One

The first phase of a national implementation strategy is from now until Canada=s decision on ratification of the Kyoto Protocol.  Phase One supports measures that are:  the most cost-effective; deliver important ancillary health, economic and environmental benefits; and lay the groundwork and build momentum for progressive action.   Phase One begins to bend Canada=s emissions trajectory now in order to lead to reduced costs later.

The following are the five Phase One themes/priorities of a national implementation strategy:

   
•    

  Enhancing awareness and understanding -- inform, educate and build Canadians= awareness of climate change, current and future impacts, and opportunities for personal actions;

     
   
•    

  Promoting technology development and innovation -- position firms to become innovators or developers of climate change-friendly technologies;

     
   
•    

  Investing in knowledge and building the foundation -- equip decision-makers with the necessary knowledge, capacity and experience to make informed future decisions including on possible instruments for future phases (e.g. a major economic instrument such as domestic emissions trading) and lay the foundation for future action;

     
   
•    

  Governments leading by example (governments' house in order) -- governments lead by getting their own house in order, and sharing Abest practices@ among governments, with communities and the private sector; and

     

   
•    

  Encouraging action -- catalyze immediate actions to reduce greenhouse gas emissions across sectors and within all key sectors through incentives to appropriate technological choices and behavioural change, and by removing barriers, supporting voluntary action and international activities.  Sectoral objectives are being developed for the following sectors: agriculture, buildings, electricity, forestry, industry, transportation and municipalities.  Sectoral objectives would include sinks, sequestration and capture of greenhouse gases as well as mitigation and adaptation.

     

Future Phases

The timing and character of future phases depend on decisions regarding the Canadian response to climate change, including ratification of the Kyoto Protocol.  Moving forward from phase one to future phases involves decisions on increasingly progressive climate change action.  Future phases would be decided as follows: Phase Two (2002/4 - 2008) would start once international rules become clarified and Canada has made a decision on ratification of the Protocol and any necessary economic instrument required to implement the Protocol.  Phase Three (2008-2012) corresponds to the five year Kyoto commitment period and the full implementation of the economic instrument and other complementary measures required to meet the Kyoto target.

In order to support future decisions and actions in future phases, a national implementation strategy provides for continuing work in Phase One on understanding the implications of Canada=s Kyoto target, and Canada=s international and domestic policy options, including cross cutting policy instruments such as emissions trading.

Business Plans

A national implementation strategy will be implemented through a series of three year business plans.  Action-based business plans will be continually monitored, reviewed and updated to reflect new understandings and opportunities, and presented to Ministers on an annual basis.  The five Phase One themes/priorities form the basis of the first business plan. Governments will draw upon the extensive work of experts, including the wide range of ideas and options put forward by the Issue Tables, and developed through further analysis, targeted stakeholder consultations, and federal-provincial-territorial discussions.  Specific actions that are currently being analyzed for inclusion in the first business plan deal with: technology, governments= own activities; improving our knowledge of climate change; encouraging voluntary action; and sectoral measures aimed at reducing emissions from all sectors of the Canadian economy. 

The federal, provincial and territorial governments will develop both individual and coordinated actions.  The first business plan will be presented to Ministers for approval at their fall 2000 meeting.

The types of options are available in the compilation of the Executive Summaries of the Issue Table Options Reports ( see www.nccp.ca).

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RECORD OF DECISION

Federal-Provincial-Territorial Framework Agreement on Climate Change

·        Ministers directed officials to draft a short, high-level framework agreement  that formalizes the nature of the partnership in responding to climate change.

·        Ministers will review the proposed framework agreement at the Fall meeting to determine their participation and the appropriate level of signature/endorsement.

·        Any such framework agreement will be based on the full respect for the jurisdictional authorities of all orders of governments.

Ministers reviewed and generally endorsed the proposed approach for the first four phase one themes, which generally reflect broad approaches:

   
• enhancing awareness and understanding
   
• promote technology development and innovation
   
• invest in knowledge and build the foundation
   
• governments lead by example

Ministers agree to respect the diversity of approaches adopted as well as the jurisdictional responsibilities of all governments.

i) Building on their earlier support to enhance awareness and understanding, Ministers:

   
• Recognized the efforts being undertaken by jurisdictions to enhance public awareness and understanding, including the structures established by provincial and territorial governments.

   
• Agreed to the approach of the proposed strategy for enhancing awareness and understanding, including:

- establishing a network of national-regional hubs where such structures do not exist,
   and where provinces and territories wish to participate;
- broadening the focus on improving the Canadian public’s understanding of climate
   change by including climate system science, impacts and opportunities to reduce greenhouse
   gas emissions and adapt to climate change.

   
• Agreed to support the establishment of a national advisory group and pilot provincial/regional hubs or provincial/territorial structures of consultations, encouraged interested jurisdictions to initiate pilot provincial/regional hubs now to support the strategy, and directed officials to further elaborate for the next JMM:

- the functions and structure of the hubs or consultations;
- appropriate funding arrangements to implement the strategy
- appropriate coordination within overall accountability of JMM.

   
• Asked officials from all jurisdictions to share their best practices on enhancing awareness and public understanding of climate change at the next JMM.

ii) To promote technology development and innovation, Ministers:

   
• Endorsed in principle the objectives of the proposed strategy to promote technology development and innovation.

   
• Directed officials to work in partnership with stakeholders to identify specific cost-effective climate change technology opportunities and scope out the appropriate level of governments’ involvement in terms of overall level of funding and cost-sharing arrangements for their consideration at the next JMM.

 

iii) To invest in knowledge/build the foundation, Ministers supported:

   
• The expansion and deepening of Canada's modelling capacity, and furthering the analysis and modelling work on implications of reducing GHG emissions in Canada by -6% below 1990 levels;

   
• The analysis of domestic and international policy options to support sound decision-making in post phase one, including analysis of cross cutting policy instruments such as domestic emissions trading.

   
• The further development of data t meet Canada's obligations under the 1992 UN Framework Convention on Climate Change; better understand the social, economic and environmental implications of responding to climate change;

   
• Additional investment in climate change science and understanding impacts and adaptation in Canada t reduce uncertainty in key areas of importance to Canada (e.g. greenhouse gases sources and sinks, and the Arctic) to support national decision-making and international negotiating decisions; better understand local, regional, national and sectoral impacts; identify adaptation opportunities; and to meet Canada's international obligations (e.g. for systematic observations and research); and

 

iv) To lead by example (governments’ house in order), Ministers:

   
• Agreed their governments would demonstrate leadership by sending a signal to the rest of the economy that climate change is important by enhancing governments’ efforts to reduce emissions in their own operations; specifically, governments agreed t

- develop comprehensive action plans that qualify for the highest level with
  VCR/ÉcoGeste, setting an aggressive target for reductions, and reporting on
  progress yearly;

- take actions to reduce greenhouse gas emissions in their own operations that go
   beyond low cost actions;

- share expertise among themselves, communicate the successes of government actions,
  and encourage other sectors to take similar actions.

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RECORD OF DECISION

Designing Phase One and Scoping out the First Business Plan

Encourage Action to Reduce Emissions: Within Sectors

Ministers reviewed the fifth and endorsed the proposed Phase one theme – encourage action.

To encourage action within key sectors:

   
• Ministers reviewed and generally agreed to the proposed initial sectoral approaches for the agriculture, buildings, electricity, industry, forestry (sinks), transportation sectors, and the municipal sector, and:

   
• instructed officials to further develop and sharpen the sectoral objectives in conjunction with stakeholders, for Minister’s consideration in the Fall JMM;

   
• undertook to consult within their own jurisdictions and other Ministerial Councils, prior to the Fall JMM, on which sectoral initiatives are most prospective for the first business plan, using as a basis measures put forward by the Issue Tables in the national climate change process.

RECORD OF DECISION*

Designing Phase One and Scoping out the First Business Plan

Encourage Action to Reduce Emissions: Cross-Sectoral Approaches
Credit for Early Action

To encourage cross-sectoral action:

   
• Ministers agreed to continue to gain experience from existing cross-sectoral programs such as the Greenhouse Gas Emission Reduction Trading (GERT) Pilot, the Pilot Emission Reduction Trading (PERT), and VCR Inc./ÉcoGeste, and to do further analysis on other cross-cutting instruments;

   
• For Credit for Early Action, Ministers reviewed progress in establishing baseline protection -- a key element of removing disincentives to early action -- and reviewed options for establishing a system to credit verifiable early action as a further incentive to reduce greenhouse gas emissions.

   
• In recognition of the practical difficulties in putting in place a comprehensive credit for early action incentive system, Ministers asked officials t
     
         
  • Develop pilot proposals and/or build on existing pilots to learn about how to promote additional action in order to test the key elements of a credit for early action system, including proposed funding and detailed design elements.
           
         
  • Consider a system to credit verifiable early action in the context of the potential policy futures, including domestic emissions trading.
         
  • Propose designs that would test how agriculture and forest sinks could appropriately be addressed.
         
  • Individual jurisdictions may develop proposals for testing the treatment of concepts such as past actions and avoided emissions.
     
     

* Quebec ministers did not participate in this decision.

Designing Phase One and Scoping out the First Business Plan

Preparing the First Business Plan

Ministers:

   
• Agreed to work with their colleagues to develop their jurisdictions’ contribution to the first business plan, and to work with other Ministerial Councils on sectoral approaches, before the fall 2000 JMM.

   
• Instructed officials to develop the first business plan for the fall JMM, based on the five key themes/priority areas discussed: enhance awareness and understanding, promote technology development and innovation, invest in knowledge and build the foundation, governments lead by example, and encourage action.    

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  RECORD OF DECISION

     

  Consultations

     

   
• Ministers agreed that the JMM co-chairs should provide their counterparts in other Ministerial Councils – including Forestry, Transportation and Agriculture – with copies of the draft strategy, business plan, and phase one approach for their views.

   
• Ministers instructed officials to report, when Ministers next meet in Fall 2000, on the outcome of national level discussions with former Issue Table members and other selected stakeholders (for example, youth, labour and aboriginals) on their views on the national strategy and the first business plan.

   
• Ministers agreed that jurisdictions may also choose to conduct their own stakeholder consultation initiatives to inform individual jurisdiction’s decisions on prospective measures for the first business plan.    

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  RECORD OF DECISION*

     

  Next Steps

     

A. Preparing for Next Steps

· Ministers instructed officials t

- draft a short, high level federal/provincial/territorial framework
   agreement that formalizes the nature of the partnership in responding to
  climate change;
- complete consultations at the national level with the former Issue Table
  members and other selected stakeholders, and report on the outcome when
  Ministers next meet;
- develop a first business plan, and scope out appropriate levels of
  resourcing;
- refine the national implementation strategy and coordinate the
  development of the strategy and business plans with other Ministerial
  Councils;
- develop a proposal for engaging the general public on climate change in
  the context of the enhancing awareness and understanding strategy, for
  consideration at the next JMM; and
- complete the initial integrated analysis and modelling work.

B. Next JMM

 

   
• Ministers agreed to meet again in Fall 2000, prior to the CoP6, to discuss:

- Canada’s interests at CoP6 and how the draft national implementation strategy will
  inform the advancement of Canada’s interests at     CoP6;
- the outcome of the consultations with stakeholders;
- a proposed federal/provincial/territorial framework agreement on climate change;
- the refined national implementation strategy;
- a first business plan for phase one, as informed by the consultations;
- a proposal for engaging the general public on climate change (in the context of the
  enhancing awareness and understanding strategy);
- possible pilot proposals for a credit for early action system; and
- initial integrated analysis and modelling results.

* Quebec ministers did not participate in the drafting of this Record of Decision.